LAND VALUES.

Shannon News, 20 June 1922, Page 3

LAND VALUES.

FARMERS’ DIFFICULTIES

In his speech at the annual meeting oi the Bank of New Zealand recently, -Mr Geo. Elliot, the chairman, dealt at some length .with the question of land values. Instances have come under our notice of farmers (said Mr Elliot) who paid unreasonably high prices for land, having been obliged to forfeit the portion of the purchase money; (often running into thousands of pounds) which they had paid, and to' hand back the property to the vendors. Other vendors have written off large sums due to them to induce the purchasers to, remain on the land, and further losses, we fear, will have to be faced before bedrock is touched; None of these losses, however, need occasion alarm as to the stability of the country, because the proportion of failures will be small. The productive capacity of' the country will, on thei whole, not be reduced. Although in some cases properties have deteriorated, in others the carrying capacity of the land and the quality of the stock have been improved. In the long run, the Dominion will be in a better position for having been purged of unwholesome conditions.

Dependent as we are on the export of our primary products, values'must be based on what land can produce In competition with other countries in the markets of the world. Our geographical position, the high rate of wages,, and the high price of land are material disadvantages under which we labour. Then again, land in many instances is held in larger holdings than permits of it being utilised to the fullest advantage. By judicious sub-division the number of settlers could be largely increased with little or no further expenditure on roads and railways. The low rate of interest which ruled in the Dominion, and the readiness with Which vendors as a whole accepted small deposits on account of purchase money on farm property, were important factors in abnormally raising land values. The South Island has not suffered to anything like the same extent as North, as land values there were not inflated to the same degree.